ECB: Cryptocurrency Cannot Be Created By Member States, What This Means For Crypto

ECB: Cryptocurrency Cannot Be Created By Member States, What This Means For Crypto

The European Central Bank (ECB) has attacked plans for an Estonian state-operated cryptocurrency. ECB President, Mario Draghi shut down any talk of the proposal by saying about crypto assets:“No member state can introduce its own currency…The currency of the euro zone is the euro.”Many observers theorize that Draghi’s response is led by a fear of losing monopoly control of the money supply. And for that reason, the division between legacy and crypto ideologies has never been more apparent.European Bank President Says No To Member State CryptocurrencyEstonia is the first European country to signal interest in a state-run cryptocurrency openly. The intention behind “Estcoin” is to offer borderless flexibility for the country’s 20,000 e-residents – foreign entrepreneurs conducting business in Estonia.But late last week, during a press conference held in Frankfurt, ECB President, Mario Draghi made it clear that all member states must only use the Euro.And while it seems the crypto industry has been making great strides of late, most notably in the regulatory approval of Bakkt’s Bitcoin settled futures, Draghi’s response comes as something of a blow for the industry.Which contrasts with an ECB report, released four months ago, that painted a neutral stance towards cryptocurrency, stating they pose no threat to the “real economy.” It read:“Crypto-assets do not fulfil the functions of money and, at the current stage, neither do they entail a tangible impact on the real economy nor have significant implications for monetary policy.”